Paya Peda is a study area located in Jerteh, Terengganu The purpose of this research is to produce a geological map of Paya Peda, to identify species of ferns fossils found in the Paya Peda and to interpret the paleo-depositional environment of Paya Pedal were three methods used inthis reseach.Among the methods used includes petrographic analysis, structural analysis and fades analysis. From the study, Paya Peda can be categorised in the Telemong Formation of Carboniferous age consisting of several types rock such as interbedded shale and mudstone and alluvium lithology. Cordaites sp., Pecopteris sp., Neoropteris sp., and Sigillaria sp. were among four species have been identified in the area of Paya Peda.Interpretation of depositional environment suggests that the mudstone and shale deposited under the low energy current environment. Besides that, the fern fossils give the indication that Paya Peda surrounding area is a humid climate area according to an adaptation of ferns habitat. So it can be concluded that the Paya Peda deposited in the , paludal (swamp) environment which has a high carbon content.